10 Stocks to Watch: Illumina, ServiceSource

Illumina shares are plunging in premarket trading after the company says third-quarter revenue will come in well below Wall Street expectations.

NEW YORK ( TheStreet) -- San Diego life science technology developer Illumina ( ILMN) said its third-quarter revenue would come in well below Wall Street expectations and it suspended its outlook for the rest of the year.

The company said it now sees revenue of $235 million for the quarter vs. the average analysts' view for revenue of $278 million. Illumina attributed the shortfall to delays in customer purchases because of the uncertain economy, excess capacity created by a new product launch in the second quarter, a drop in reagent usage for its Genome Analyzer installed customer base, and lower-than-expected upgrades to its HiSeq 2000 systems.

For the full year, the company said it now expects revenue above $195 million, better than its prior projection for revenue ranging from $190 million to $192 million.

The current average estimate of analysts polled by Thomson Reuters is for revenue of $46.1 million in the third quarter and $191.9 million for the year. The company's prior forecast was for adjusted Ebitda of between $500,000 and $1 million and revenue of $45 million to $46 million.

Shares were surging 12.4% to $15.

Sony ( SNE) is in talks to buy outEricsson's ( ERIC) stake in their mobile phone joint venture, according to Reuters, in an effort to unify its product offerings.

Ericsson shares were down 1.2% to $10.19.

British banks Royal Bank of Scotland ( RBS) and Lloyds ( LYG) have been downgraded by credit rating agency Moody's.

Lloyds shares were down 0.9% to $2.15.

Yahoo! ( YHOO) may be close to selling its 35% stake in Yahoo Japan, the Financial Times reported.

Shares were up 0.5% to $15.72.

Software giant Oracle ( ORCL) and Oracle America will be paying $199.5 million and interest to resolve accusations the companies failed to tell the General Services Administration about discounts and other commercial sales practices involving other customers, the Justice Department said.

Discount variety stores operator Dollar Tree ( DLTR) said its board has authorized the repurchase of an additional $1.5 billion of Dollar Tree common stock.